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Lam Research (LRCX) Q3 Earnings & Revenues Miss Estimates
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Lam Research Corporation ((LRCX - Free Report) ) reported third-quarter fiscal 2020 non-GAAP earnings of $3.98 per share, which missed the Zacks Consensus Estimate of $4.02. Also, the figure decreased 1% sequentially.
Adjusted revenues decreased 3.1% sequentially but increased 2.6% year over year to $2.50 billion. The reported revenues missed the Zacks Consensus Estimate by 5.6%.
Following the weaker-than-expected fiscal third-quarter results, its share price rose 2.1% in after-hours trading.
Top Line in Detail
China, Korea and Taiwan accounted for 32%, 23% and 21% of the company’s total fiscal third-quarter revenues, respectively. On the contrary, Japan, the United States, Europe and Southeast Asia accounted for 10%, 9%, 3% and 2%, respectively.
Lam Research Corporation Price, Consensus and EPS Surprise
Non-GAAP gross margin came in at 46.3%, which expanded 60 basis points (bps) sequentially.
Non-GAAP operating expenses were $486.5 million, reflecting an increase of 3.5% sequentially. As a percentage of sales, both research & development expenses and selling, general & administrative costs decreased.
Adjusted operating margin was 26.9%, down 20 bps sequentially. The increase was primarily due to higher-than-expected expenses.
Balance Sheet & Cash Flow
At the end of the fiscal third quarter, cash and cash equivalents, and short-term investments increased to $5.6 billion from $4.9 billion in the fiscal second quarter.
Cash flow from operating activities was $541.4 million, up from $307.9 million in the fiscal second quarter. Capital expenditures were $51.4 million, down from $62.1 million in the fiscal second quarter.
During the quarter, Lam Research paid dividends of $163.5 million.
Guidance
The company did not provide any guidance for the June quarter due to risks and uncertainties related to the COVID-19 crisis.
Long-term earnings growth for Stamps.com, Fiverr International and Wayfair is currently projected at 15%, 11.6% and 23%, respectively.
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Lam Research (LRCX) Q3 Earnings & Revenues Miss Estimates
Lam Research Corporation ((LRCX - Free Report) ) reported third-quarter fiscal 2020 non-GAAP earnings of $3.98 per share, which missed the Zacks Consensus Estimate of $4.02. Also, the figure decreased 1% sequentially.
Adjusted revenues decreased 3.1% sequentially but increased 2.6% year over year to $2.50 billion. The reported revenues missed the Zacks Consensus Estimate by 5.6%.
Following the weaker-than-expected fiscal third-quarter results, its share price rose 2.1% in after-hours trading.
Top Line in Detail
China, Korea and Taiwan accounted for 32%, 23% and 21% of the company’s total fiscal third-quarter revenues, respectively. On the contrary, Japan, the United States, Europe and Southeast Asia accounted for 10%, 9%, 3% and 2%, respectively.
Lam Research Corporation Price, Consensus and EPS Surprise
Lam Research Corporation price-consensus-eps-surprise-chart | Lam Research Corporation Quote
Operating Details
Non-GAAP gross margin came in at 46.3%, which expanded 60 basis points (bps) sequentially.
Non-GAAP operating expenses were $486.5 million, reflecting an increase of 3.5% sequentially. As a percentage of sales, both research & development expenses and selling, general & administrative costs decreased.
Adjusted operating margin was 26.9%, down 20 bps sequentially. The increase was primarily due to higher-than-expected expenses.
Balance Sheet & Cash Flow
At the end of the fiscal third quarter, cash and cash equivalents, and short-term investments increased to $5.6 billion from $4.9 billion in the fiscal second quarter.
Cash flow from operating activities was $541.4 million, up from $307.9 million in the fiscal second quarter. Capital expenditures were $51.4 million, down from $62.1 million in the fiscal second quarter.
During the quarter, Lam Research paid dividends of $163.5 million.
Guidance
The company did not provide any guidance for the June quarter due to risks and uncertainties related to the COVID-19 crisis.
Zacks Rank & Stocks to Consider
Currently, Lam Research carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader technology sector include Stamps.com Inc. , Fiverr International Lt. (FVRR - Free Report) and Wayfair Inc. (W - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Stamps.com, Fiverr International and Wayfair is currently projected at 15%, 11.6% and 23%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>